The Scottish Government has backed Scotch whisky producers who say they need tax relief to maximise the opportunities of reduced tariffs in export markets including China.

The Scotch Whisky Association (SWA) has told the UK government that its upcoming Budget must “help turn trade wins into domestic growth by cutting spirits duty and committing to reform… structural disadvantages”.

The trade body’s 12-page Autumn Budget submission to the Treasury says the halving of Chinese tariffs has boosted “a growing market for Scotch whisky”. It said this, as well as reductions in US and Indian tariffs, “are all, clearly, welcome developments and will help the industry – but not overnight”.

Chinese tariffs on Scotch whisky were reduced from 10% to 5% in February this year, following a visit to China by then Prime Minister Keir Starmer, which was seen as a reset of UK-China relations.

The SWA is calling on Chancellor John Healey to cut excise duty on spirits, 70% of which are produced in Scotland, and for whom hospitality businesses rely on for over a third (38%) of their total profits.

It says the government should “pair ambitious trade policy with a stable domestic environment that gives producers confidence to invest in production, people and place”.

Speaking after meeting with the SWA’s Council of member companies, First Minister John Swinney said: “It was a pleasure to join the SWA for their Council discussions today.

“Scotch whisky is a cornerstone of Scotland’s culture, heritage, economy and global identity. This government stands shoulder to shoulder with this industry, supporting thousands of jobs and standing proudly as a symbol of Scotland’s reputation around the world.

“Today I’ve heard directly from major producers to smaller distillers. It is clear that duty rises have placed undue pressure on the industry and I echo calls for the UK government to address this unfairness.”

Mark Kent, chief executive of the Scotch Whisky Association, said: “We are grateful for the support of the First Minister and his team in backing an iconic Scottish industry like Scotch whisky, and its partners in Scotland from farmers to hospitality venues and tourism.

“We welcome their recognition that a cut to excise duty in the Autumn Budget would have a tangible impact on Scotch whisky producers large and small by allowing them breathing room to look to the future, invest in innovation and expansion, and support jobs – something which can only help boost growth across Scotland and the wider UK.”